Outlining the Future of HOPE

Tim Connell, president of the Georgia Student Finance Commission, addressed changes to the HOPE scholarship when he was the guest speaker at the Johns Creek Chamber of Commerce's monthly luncheon on Thursday. He gave the audience an overview of HOPE, and explained the cutbacks to the lottery-funded scholarship that were signed into law earlier this week. 

He said in the early years of HOPE, which was enacted after voters approved the state lottery to fund it in 1992, the scholarship's funds experienced "significant growth." But, in the last four years deposits have flattened out with 1 percent growth.

Meanwhile, the percentage of students receiving HOPE benefits has increased, while the University of Georgia's tuition has increased since the state reduced its support of the school due to its own budget crisis.

In 2010 the Georgia Student Finance Commission had to dip into its reserves.

"Clearly we were on an unsubstainable path," Connell said, with reserves dissipating quickly. The projected shortfall for 2011 is $243,774,261.

Connell outlined changes that HB326 will mandate to HOPE, including the elimination of the books and fees allowance, the removal of the link between award and tuition, the establishment of a seven-year time limit for students to receive the scholarship after high school, and a limitation on bonuses paid to Lottery Corp. employees.

Responding to a question from the audience, Connell said there will not be an income-cap level on families whose children receive HOPE. "We thought it was a bad idea" to place an income cap because the award is "based on achievement," he said.

Connell added that the changes mandated by the recent law will allow the commission to effectively manage balancing revenue and expenses.

For more on the history of HOPE, the financial status and future changes, click on the PDF from the Georgia Student Finance Commission accompanying this article.